Co-op Group Limited (Co-op) has sold its underwriting business for £185m to insurance firm Markerstudy Group, commencing a 13-year partnership to “provide home and motor insurance products” under the Co-op brand.
In a statement, Co-op CEO Steve Murrells revealed that the company had always been clear of its intention to “significantly grow its insurance footprint”.
As a result of this agreement, Markerstudy’s customer numbers will now increase by 1.3 million, and its GWP will be raised by over £500m.
Kevin Spencer, Group CEO of Markerstudy said: “This is our biggest acquisition to date and provides us with an unparalleled opportunity for growth.
“The 13-year agreement gives us access to the Co-op’s 4.6 million active members who will benefit from our investment in technology, underwriting expertise and sophisticated product development.”
He added:”I am delighted to have concluded the deal this side of Christmas. It’s wonderful to have positive news to share with our loyal staff after.”